We have raised concern with DoT over 20% import duty on telecom equipment: Rajan Mathews, COAI

We provide cellular service at a very affordable rates and the handset is one of the critical elements that leads to the empowerment of women, minorities, bottom of the pyramid, said Rajan Mathews, DG, COAI, in an interview with ETNOW.

Edited excerpts:

US Commerce Secretary Wilbur Ross has raised concern about high import duties on telecom equipment. What is your view on that?

One of the areas that he mentioned was the trade imbalance arising out of the 20% duties that are put on telecom equipment. We have raised a similar concern with DoT because this is not high-end, this is for the masses. We provide cellular service at a very affordable rates and the handset is one of the critical elements that leads to the empowerment of women, minorities, bottom of the pyramid. It is a good point that he made.

Obviously both countries have their particular focus and their priorities but I think the message that Commerce Minister Prabhu sent is that it is a matter of cooperation and partnership. Both countries have to come together, saying these things make sense for both countries. Yes, there are anomalies here and yes and there are trade imbalances, but the way forward is to understand the opportunities and how to maximise that. I think that is a very clear message.

On a larger front, do you think there is concern for India as he also mentioned India’s FDI policies and the US did not seem very happy with overall tariff policy? Do you think any concern is emerging now for India US trade?

There is an old saying that the rising tide lifts all ships. Mr Prabhu made that particular point. He says when global trade expands, then all countries tend to benefit. That is clearly the way forward.

India will have certain trade barriers and of course, in the long term those will reduce. Now, a great example he gave was yes, today we have a trade imbalance to the benefit of India. But a couple of years ago, we are looking to buy Boeing airplanes. These are structural issues that are temporary and as we move forward, there are plenty of opportunities to make sure that the rising tide lifts all ships.

What do you think of the line of the day -- “Make America greater with India’s partnership.” What do you think of that?

It really goes to the heart of the whole issue of global trade. Any restrictive issues from any country ultimately constraints the opportunities for people in both countries or in multiple countries. The broader the opportunities we give for cross-border investments, for cross-border partnerships, for cross-border opportunities, ultimately everybody will benefit from that.

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After PSU banks, the government is likely to infuse capital in two chronically ill telecom PSUs BSNL and MTNL, and the Union Cabinet is likely to take a decision on 4G spectrum allocation to them by the third week of the current month after DoT places the note before it for consideration.

At a high-level meeting at the PMO late Tuesday, it was also decided that the two telcos will frame a Voluntary Retirement Scheme (VRS) to reduce their employee strength, which will be followed by a reduction in the retirement age to 58.